AFP, published on Monday, September 20, 2021 at 5:56 p.m.
Baptism thwarted on the Frankfurt Stock Exchange: the Dax index sank into the red Monday, for the first day of a passage from 30 to 40 values supposed to boost the German market but overshadowed by the turbulence affecting the Chinese group Evergrande.
Most of the ten companies promoted in the flagship index have slipped, like the sports equipment manufacturer Puma (-1.75 to 99.22 euros) or the online shopping site Zalando (-4.41% to 90.91 euros).
The new formula Dax ended down 2.3% to 15,132.06 points, the lowest since July. He briefly dropped more than 3% during the session before recovering.
“The euphoria of the reorganization of Dax has therefore already died down on the first official day of listing,” observes analyst Andreas Lipkow.
“Banks and financial stocks in particular are suffering from speculation surrounding the insolvency of Chinese real estate group Evergrande,” he adds.
All the world’s stock markets were affected by the same volatility on Monday.
The enlargement of the Dax to forty values, decided on last year, is supposed to give it a facelift, better reflect the diversity of the German economy and align it with international standards.
As for young shoots, two digital companies – Zalando and the Hellofresh meal delivery man – join the elite stock market.
The growing healthcare sector is strengthening with the integration of medical technician Siemens Healthineers, laboratory equipment supplier Sartorius and biotechnology company Qiagen.
But “the old economy” has not had its last word with Airbus, the world leader in chemical distribution Brenntag and the holding company Porsche SE. Another well-known promotion: the sports equipment supplier Puma finds his enemy brother Adidas in the first stock market league.
The Dax therefore offers itself a facelift but no revolution and remains dominated by the traditional industry, in particular the heavyweights of the automobile (Volkswagen, BMW, Daimler) or chemicals (BASF, Bayer, Henkel), historical members of the index.
– Without BioNTech –
Despite the reform, “the index mostly lacks young members from technology sectors,” note analysts at CMC Markets. On Wall Street, tech giants like Facebook, Amazon and Netflix spearhead stock quotes.
“Apple is currently worth more on the stock market than the entire Dax 40”, according to CMC Markets, which sees it as a symbol of “delay” taken by the stock market of the world’s 4th largest economy.
The name Siemens now even appears three times. Next to parent company Siemens, the mainstay of Dax, energy technology company Siemens Energy joined the index in March, and is now flanked by Siemens Healthineers.
The ten new members of Dax have a limited weight, estimated at around 15% of the new Dax. Airbus alone represents around 5%.
As a complementary aspect of this Dax reform, new governance rules have come into force in the wake of the Wirecard scandal and the resounding bankruptcy of this online payments company in June 2020.
This finance start-up had triumphantly entered Dax barely two years earlier.
From now on, Dax candidates must present two years of positive operational results (Ebitda) and a minimum level of liquidity.
At the risk of letting future stars slip away? Thus, the German company BioNTech, which developed with Pfizer one of the first vaccines against Covid-19, chose – like many European unicorns – to enter the Nasdaq in October 2019.
At the time, she had never made a profit. Thanks to the success of the vaccine, its price has been multiplied by six in one year and the young laboratory, which became profitable in 2021, is one of the most promising biotechs.